Analyze what each ratio and piece of financial data means
At this point you have examined three years of financial statements for your firm and produced a proforma statement. You have also determined their sustainable growth rate as well.
You have also learned about various financial ratios.
In a comprehensive summary of your firm, analyze following financial information for your firm for the last three years.
? Net Income
? Profitability Ratios
o Gross Profit Margin
o Net Profit Margin
o Return on Assets
? Liquidity Ratios
o Current Ratio
? Market Ratios
o Earnings per Share
o Price to Earnings Ratio
? Debt measures
o Debt to Asset Ratio
? Explain what each ratio and piece of financial data means and explain the trends in each; are they increasing or decreasing and is this trend positive or negative for the firm and why? Analyze this financial data!
? Using the information from IP4, explain the Sustainable Growth Rate for your firm and what it means for your company (do NOT copy and paste the information from IP4! This is not what the assignment requires)
? Using the financial data, ratios, proforma, and SGR, summarize and reflect on the future financial health of your firm.